Cash Disbursement

Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at $70$ percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at $15$ percent of sales and are paid during the month of sale. Other operating costs amounting to $10$ percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $$24,000$ is paid for computer services. Sales revenue is forecast as follows: Month Sales Revenue

February $$180,000$

March $220,000$

April $230,000$

May $270,000$

June $250,000$

July $290,000$ Prepare a schedule of cash disbursements for April, May, and June. Lumbers Purchases: April, May, June, Wages: April $=$ $$34,500,$ May $40,500,$ June $37,500.$ Operating Expenses: April, May, June. Lease Payment April $=24,000,$ May $=24,000,$ June $=24,000.$ Total Disbursements: April, May, June